KBank's Strategic Acquisition in Muang Thai Group Holding

K KASIKORNTHAI Thailand's Digital Readiness: Number of Users ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK ■ High adoption of digital lifestyle in Thai market; high penetration in smart devices and internet users in preparation toward a cashless society (Mobile Banking & e-Money) 161.6% Penetration Mobile Internet 1) (Mobile internet numbers) 58.5% Penetration Broadband Internet 1) (No. of households using internet via broadband) 77.0% Penetration Volume: 5.3 bn transactions, +32.7% YoY Value: 91.7 trn baht, +18.4% YoY 3) Social Media 2) (No. of Facebook users) Thailand e-Payment (Volume and Value) Prompt Pay พร้อมเพย์ 74.7 m Million 157.4% Penetration 66.5% Penetration PromptPay 4) (Total registration) Mobile Banking (No. of accounts) 5) Internet Banking 5) (No. of accounts) 199.3% Penetration e-Money 5) (No. of accounts/ cards) Source: The Bank of Thailand (BOT), National Statistical Office of Thailand (NSO), Thai Banker Association (TBA), Ministry of Interior (MOI), wearesocial and KResearch Notes: Denominator for all penetration ratio is number of population age six and above as of December 2022. Denominator for fixed internet penetration is number of household. 1) As of Dec-22, 2) As of Jan-23, 3) Jan-Feb-23, 4) As of Jan-23, 5) As of Feb-23 บริการทุกระดับประทับใจ K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Financial Sector Master Plan (FSMP) Implementation Stages FSMP I (Y2004-2009) ■ Increase efficiency of the financial institutions system - 'One Presence' policy - Expand scope of business: 'Universal Banking' - New licenses for retail banks and foreign bank subsidiaries ■ Promote financial inclusion - Strengthen financial institutions (FIs) by promoting voluntary mergers ■ Protect customers Source: BOT and KResearch FSMP II (Y2010-2014) Looking forward to liberalization Reducing system-wide operating costs ■ Streamlining regulations ■Tackling remaining NPLs and NPAs Promoting competition and access to financial services ■ Promote competition ■ Promote financial access ☐ Strengthening financial infrastructure ■ Promote development of financial products that help support risk management ■ Enhance information systems for risk management ■ Push for draft/review of necessary financial laws to support risk management and an expedited resolution to NPLs ■ Promote information technology utilization ■ Develop human resources in the financial sector FSMP III (Y2016-2020) competitive, inclusive, connected, and sustainable 1) Promote electronic financial and payment services, as well as enhance efficiency of the financial system ■ Promote the adoption of digital banking & electronic payment services in the government, business, and retail sectors ▪ Enhance operational efficiency of financial institutions and other service providers ■ Evaluate future financial landscape to promote operational efficiency of financial institutions and other service providers 2) Support regional trade and investment linkages ■ Facilitating and reducing obstacles for banks' international expansion, including ■ The establishment of Qualified ASEAN Bank (QAB) ■ The development of cross-border financial infrastructures ■ The creation of suitable financial environments among neighboring countries to foster international trade and investment in the GMS 3) Promote financial access ■ For households: encouraging development of financial products and services appropriate for changing customer demands ▪ For SMEs: improving necessary SME database within the financial institution system and supporting credit extension to SMEs ▪ For Corporate: promoting and facilitating suitable environment for private sector's raising of capital 4) Develop relevant infrastructure (Enablers) ■ Developing key infrastructures in the financial system ■ Strengthening regulations and supervision in line with international standards to ensure stability of the overall financial system Note: There are four types of Commercial banks in Thailand; Full service banks; Foreign bank branches; Retail banks; and Subsidiaries GMS = Greater Mekong Subregion = Cambodia, China, Lao PDR, Myanmar, Thailand, and Vietnam บริการทุกระดับประทับใจ 123 124

View entire presentation